Business Lenders FAQ
Here are questions lenders typically ask when inquiring about our services:
What information is included in a certified appraisal report?
In order to be USPAP compliant, a certified appraisal report includes specific information about the subject property. These facts will withstand scrutiny by any interested party, including the IRS, lenders, attorneys, and members of the judiciary system.
A certified report prepared by Capital Machinery and Equipment Appraisals will include the following defensible information regarding the subject of your client’s appraisal:
- Summary of facts
- Scope of work
- Degree to which the property is inspected or identified
- Extent of research into the physical or economic factors that could affect the property
- Extent of data research
- Type and extent of analysis applied in arriving at opinions or conclusions
- Depth of on-site inspection
- Overall condition of equipment
- Intended use
- Definitions of conditions
- Methods of evaluation
- Sources contacted
- Final value summary and reconciliation
- Appraiser’s certifications and qualifications
How do you know about the machinery and equipment that you appraise?
The team at Capital Machinery and Equipment Appraisals has years of experience appraising machinery and equipment and is well connected in the industry. Our experience and network of professionals will ensure your client’s assets are appraised accurately.
How can you place a value on items you have not seen?
The practice of appraising items not seen is called a desktop appraisal. A desktop appraisal is required in situations where the collateral is scattered over a large geographic area, or the lender’s client wants to keep the cost of the appraisal down. Desktop appraisals are based solely on the information provided by the lender’s client.
What type of equipment do you appraise?
We serve a variety of industries and can accommodate most requests. Please contact us directly with further information regarding the loan application requirements.
Will a CMEA prepared report stand up to court scrutiny?
Yes! A certified report prepared by a CMEA is substantiated and irrefutable and will hold up to the highest levels of scrutiny. A CMEA prepared report is written in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP). These standards were promulgated by the U. S. Congress and is accepted around the world as the authoritative source for machinery and equipment values.